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Accounting Policies of Gujarat Natural Resources Ltd. Company

Mar 31, 2014

A) Basis of Preparation:

The financial statements of Gujarat Natural Resources Limited ("the Company") have been prepared under the historical cost convention on accrual basis of accounting in accordance with the Indian Generally Accepted Accounting Principles (GAAP) and mandatory accounting standards as specified in the Companies (Accounting Standards) Rules, 2006, to the extent applicable and relevant provisions of the Companies Act, 1956.

All assets and liabilities have been classified as current or non-current as per the company''s normal operating cycle and other criteria set out in the Revised Schedule VI to the Companies Act, 1956. Based on the nature of product and the time between the acquisition of assets for processing and their realization in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current –non current classification of assets and liabilities.

B) Fixed Assets:

(i) Fixed Assets:

Fixed Assets are stated at cost of acquisition less accumulated depreciation. All costs, including financing cost till commencement of commercial production are capitalised/ to be capitalised.

(ii) Depreciation:

Depreciation on fixed assets is charged on the Straight Line Method at the rates prescribed in Schedule XIV to the Companies Act, 1956.

C) Borrowing Costs:

Borrowing cost attributable to acquisition, construction or production of qualifying assets are capitalised as part of the cost of that asset, till the asset is ready for use. Other borrowing costs are recognized as an expense in the period in which these are incurred.

D) Investments :

Investments are valued at cost.

E) Revenue Recognition:

All income and expenditure items having material bearing on the financial statements are recognised on accrual basis.

F) Employee Benefits (AS -15):

As informed to us and explained to us there are no employees who are eligible for such benefits and hence not applicable.

Further the leave accrued has to be encashed within the calendar year and hence there is no accrued leave to be provided for.

G) Foreign Exchange Transactions (AS-11):

This accounting standard is not applicable

H) Amortization of Miscellaneous Expenditure:

Preliminary expenses and Pre-operative expenses has not been amortized.

I) Deferred tax

Deferred Tax charge or credit reflects the tax effects of timing differences between accounting Income and taxable income for the period. The deferred tax charge or credit and the corresponding deferred tax liabilities or assets are recognized using the tax rates that have been enacted or substantially enacted by the Balance Sheet date as per the Accounting Standard – 22.

In view of negligible difference in taxable profit and book profit, the impact of deferred tax assets/ liability is not considered.

J) Impairment of assets:

An assets is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged to the Profit and Loss Account in the year in which assets is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been change in the estimate of recoverable amount.

K) Prior Period Adjustment :

Expenses and income pertaining to earlier/previous years are accounted as prior period items.

L) Earning Per Share:

Disclosure is made in the Profit and Loss Account as per the requirements of the standard.

M) Consolidated financial statements

Consolidated financial statements of the Company and its subsidiaries are enclosed.

N) Provisions, Contingent Liabilities and Contingent Assts:

The Company creates a provision when there is present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of that obligation. Contingent Liabilities which are considered significant and material by the company are disclosed in the Notes to Accounts. Contingent Assets are neither recognized nor disclosed.


Mar 31, 2013

A) Basis of Preparation:

The financial statements of Gujarat Natural Resources Limited ("the Company") have been prepared under the historical cost convention on accrual basis of accounting in accordance with the Indian Generally Accepted Accounting Principles (GAAP) and mandatory accounting standards as specified in the Companies (Accounting Standards) Rules, 2006, to the extent applicable and relevant provisions of the Companies Act, 1956.

All assets and liabilities have been classified as current or non-current as per the company''s normal operating cycle and other criteria set out in the Revised Schedule VI to the Companies Act, 1956. Based on the nature of product and the time between the acquisition of assets for processing and their realization in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current -non current classification of assets and liabilities.

B) Fixed Assets:

(ij Fixed Assets:

Fixed Assets are stated at cost of acquisition less accumulated depreciation. All costs, including financing cost till commencement of commercial production are capitalised/ to be capitalised.

(ii) Depreciation:

Depreciation on fixed assets is charged on the Straight Line Method at the rates prescribed in Schedule XIV to the Companies Act, 1956.

C) Borrowing Costs:

Borrowing cost attributable to acquisition, construction or production of qualifying assets are capitalised as part of the cost of that asset, till the asset is ready for use. Other borrowing costs are recognized as an expense in the period in which these are incurred.

D) Investments :

Investments are valued at cost.

E) Revenue Recognition:

All income and expenditure items having material bearing on the financial statements are recognised on accrual basis.

Sales and Purchase of Commodity are mainly executed on MCX

F) Employee Benefits (AS -15):

The company is not liable to the provision of Provident Fund Act or ESI Act and no provision is required for Gratuity liability as non of the employee has completed eligible period of employment.

Further the benefit in terms of Leave Encashment is paid during the same year as the employees are not allowed to accumulate the leaves entitled during the year.

G) Foreign Exchange Transactions (AS-11):

This accounting standard is not applicable H) Amortization of Miscellaneous Expenditure:

Preliminary expenses and Pre-operative expenses has not been amortized.

I) Deferred tax

Deferred Tax charge or credit reflects the tax effects of timing differences between accounting Income and taxable income for the period. The deferred tax charge or credit and the corresponding deferred tax liabilities or assets are recognized using the tax rates that have been enacted or substantially enacted by the Balance Sheet date as per the Accounting Standard - 22.

In view of negligible difference in taxable profit and book profit, the impact of deferred tax assets/ liability is not considered.

J) Impairment of assets:

An assets is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged to the Profit and Loss Account in the year in which assets is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been change in the estimate of recoverable amount.

K) Prior Period Adjustment:

Expenses and income pertaining to earlier/previous years are accounted as prior period items.

L) Earning Per Share:

Disclosure is made in the Profit and Loss Account as per the requirements of the standard.

M) Consolidated financial statements

Consolidated financial statements of the Company and its subsidiaries are enclosed.

N) Provisions, Contingent Liabilities and Contingent Assts:

The Company creates a provision when there is present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of that obligation. Contingent Liabilities which are considered significant and material by the company are disclosed in the Notes to Accounts. Contingent Assets are neither recognized nor disclosed.


Mar 31, 2012

A) Basis of Preparation:

The financial statements of Gujarat Natural Resources Limited ("the Company") have been prepared under the historical cost convention on accrual basis of accounting in accordance with the Indian Generally Accepted Accounting Principles (GAAP) and mandatory accounting standards as specified in the Companies (Accounting Standards) Rules, 2006, to the extent applicable and relevant provisions of the Companies Act, 1956.

All assets and liabilities have been classified as current or non-current as per the company's normal operating cycle and other criteria set out in the Revised Schedule VI to the Companies Act, 1956. Based on the nature of product and the time between the acquisition of assets for processing and their realization in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current -non current classification of assets and liabilities.

B) Fixed Assets:

(i) Fixed Assets:

Fixed Assets are stated at cost of acquisition less accumulated depreciation. All costs, including financing cost till commencement of commercial production are capitalised/ to be capitalised.

(ii) Depreciation:

Depreciation on fixed assets is charged on the Straight Line Method at the rates prescribed in Schedule XIV to the Companies Act, 1956.

C) Borrowing Costs:

Borrowing cost attributable to acquisition, construction or production of qualifying assets are capitalised as part of the cost of that asset, till the asset is ready for use. Other borrowing costs are recognized as an expense in the period in which these are incurred.

D) Investments:

Investments are valued at cost.

E) Revenue Recognition:

All income and expenditure items having material bearing on the financial statements are recognised on accrual basis.

Sales and Purchase of Commodity are mainly executed on MCX

F) Employee Benefits (AS -15):

As informed to us and explained to us there are no employees who are eligible for such benefits and hence not applicable

G) Foreign Exchange Transactions (AS-11):

This accounting standard is not applicable

H) Amortization of Miscellaneous Expenditure:

Preliminary expenses and Pre-operative expenses has not been amortized.

I) Deferred tax

Deferred Tax charge or credit reflects the tax effects of timing differences between accounting Income and taxable income for the period. The deferred tax charge or credit and the corresponding deferred tax liabilities or assets are recognized using the tax rates that have been enacted or substantially enacted by the Balance Sheet date as per the Accounting Standard - 22.

In view of negligible difference in taxable profit and book profit, the impact of deferred tax assets/ liability is not considered.

J) Impairment of assets:

An assets is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged to the Profit and Loss Account in the year in which assets is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been change in the estimate of recoverable amount.

K) Prior Period Adjustment :

Expenses and income pertaining to earlier/previous years are accounted as prior period items.

L) Earning Per Share:

Disclosure is made in the Profit and Loss Account as per the requirements of the standard.

M) Consolidated financial statements

Consolidated financial statements of the Company and its subsidiaries are enclosed.

N) Provisions, Contingent Liabilities and Contingent Assts:

The Company creates a provision when there is present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of that obligation. Contingent Liabilities which are considered significant and material by the company are disclosed in the Notes to Accounts. Contingent Assets are neither recognized nor disclosed.


Mar 31, 2011

1. Significant Accounting Policies:

A) Basis of Preparation: The financial statement of Gujarat Natural Resources Limited ("the Company") have been prepared under the historical cost convention on accrual basis of accounting in accordance with the Indian Generally Accepted Accounting Principles (GAAP) and mandatory accounting standards as specified in the Companies (Accounting Standards) Rules, 2006 to the extent applicable and presentation requirements of the Companies Act, 1956.

B) Fixed Assets:

(i)Fixed Assets:

Fixed Assets are stated at cost of acquisition less accumulated depreciation. All costs, including financing cost till commencement of commercial production are capitalised/to be capitalized.

(ii) Depreciation:

Depreciation on fixed assets is charged on the Straight Line Method at the rates prescribed in Schedule XIV to the Companies Act,1956.

C) Borrowing Costs:

Borrowing costs attributable to acquisition, construction ot production of qualifying assets are capitalised as part of the cost of that asset, fill asset is ready for use. Other borrowing costs are recognized as an expense in the period in which these are incurred.

D) Investments;

Investments are valued at cost.

E) Inventories:

Stock in trade are valued at lower of the cost and net realizable value.

F) Revenue Recongnition:

All income and expenditure items having material bearing on the financial statements are recognised on accrual basis.

Sales are recorded net of trade discount, rebates and VAT. In case of derivative transactions on MCX, the sales are shown net off of charges such as stamp duty, transaction charges etc.

Interest income is recognised on the time proportion method.

G) Employee Benefits (As-15):

As informed to us and explained to us there are no employees who are eligible for such benefits and hence not applicable.

H) Foreign Exchange Transactions(AS-11):

This accounting standard is not applicable

I) Amortization of Miscellaneous Expenditure:

Preliminary expenses and Pre-operative expenses has not been amortized.

J) Deferred tax

Deferred tax charge or credit reflects the tax effects of timing differences between accounting Income and taxable income for the period. The deferred tax charge or credit and the corresponding deferred tax liabilities or assets are recognized using the tax rates that have been enacted ot substantially enacted by the Balance Sheet date as per the Accounting Standard-22.

In view of negligible difference in taxable profit and book profit, the impact of deferred tax assets/liability is not considered.

K) Impairment of assets:

An assets is treated as impaired when the caring cost of assets exceeds its recoverable value. An impairment loss is charged to the Profit and Loss Account in the Year in which assets is identified as Impaired. The impairments loss recognized in prior accounting period is reversed if there has been change in the estimate of recoverable amount.

L) Prior Period Adjustment:

Expenses and income pertaining to earlier/previous years are accounted as prior period items.

M) Earning Per Share:

Disclosure is made in the Profit and Loss Account as per the requirements of the standard.

N) Consolidated financial statements

Consolidated financial statements of the Company and its subsidiaries are enclosed.

O) Provisions, Contingent Liabilities and Contingent Assets:

The Company creates a provision when there is present obligation as a result of a past event that probably requires on outflow of resources and a reliable estimate can be made of the amount of that obligation. Contingent Liabilities which are considered significant and material by the company are disclosed in the Notes to Accounts. contingent Assets are neither recognized nor disclosed.


Mar 31, 2010

A) Basis of preparation of financial statements

a) The financial statements have been prepared under the historical cost convention, in accordance with the generally accepted accounting principles and provisions of the Companies Act, 1956 as adopted consistently by the Company.

b) Accounting policies not specifically referred to are otherwise consistent with generally accepted accounting principles followed by the Company.

B) Sales: Sales are inclusive of VATandnetofSalesReturn, Brokerage etc. ifany.

C) Fixed Assets and Depreciation:

a) Fixed Assets are stated at cost of acquisition less accumulated depreciation. All costs, including financing cost till commencement of commercial production are capitalised/ to be capitalised.

b) Depreciation on the assets of the Company (except Leasehold Land and assets under installation/construction) has been provided on Straight Line Method at the rates and in the manner specified in the amended Schedule XIV to the Companies Act, 1956.

D) Investments : Investments are stated at cost and have been considered as long term investments. The Investments at the close of the year are as certified by the management. The said Investments are subject to physical verification.

E) Cash on hand as at 31/3/2010 has been certified as correct by the management.


Mar 31, 2009

A) Basis of preparation of financial statements

a) The financial statements have been prepared under the historical cost convention, in accordance with the generally accepted accounting principles and provisions of the CompaniesAct,1956 as adopted consistently by the Company.

b) Accounting policies not specifically referred to are otherwise consistent with generally accepted accounting principles followed by the Company.

B) Sales: Sales are inclusive of VATandnetofSalesReturn.Brokerageetc. ifany.

C) Fixed Assets and Depreciation:

a) Fixed Assets are stated at cost of acquisition less accumulated depreciation. All costs, including financing cost till commencement of commercial production are capitalised/to be capitalised.

b) Depreciation on the assets of the Company (except Leasehold Land and assets under installation/construction) has been provided on Straight Line Method at the rates and in the manner specified in the amended Schedule XIV to the Companies Act, 1956.

D) Investments : Investments are stated at cost and have been considered as long term investments. The Investments at theclose of the year are as certified by the management. The said Investments are subject to physical verification.

E) Cash on hand as at 31/3/2009 has been certified as correct by the management.



 
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